U.S. and China Sign Phase One Deal, List 4A tariffs to lower
On Wednesday, January 15th, the U.S. and China ratified ‘Phase One’ of a trade agreement.
The agreement, which covers a range of topics from intellectual property rights to currency manipulation, includes a purchase of an additional $200 billion in American exports by China. USTR has not yet specified the exact purchases to be made, but has indicated they will include manufactured goods, agricultural goods, and energy products throughout 2020 and 2021.
In return, the U.S. has agreed to reduce the List 4A tariff rate from 15% to 7.5% within the next 30 days. List 4B will remain suspended. USTR has indicated a Federal Register notice will be published shortly with more information.
This agreement is part of a three-part deal announced last year by the Trump administration. A broader deal is not expected to be finalized until after the November election.
The full copy of the Phase One trade agreement can be found here.
If you have any questions, please reach out to Bill Carey, Import Compliance Manager, at bcarey@tbgfs.com or (800) 493-9444.
